HB-5284, As Passed House, June 10, 2014

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5284

     A bill to amend 1980 PA 299, entitled

"Occupational code,"

by amending sections 2404 and 2405 (MCL 339.2404 and 339.2405),

section 2404 as amended by 2010 PA 151 and section 2405 as amended

by 2007 PA 157, and by adding section 2404c.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2404. (1) The Except as provided in section 2404c, the

department may require an applicant, a licensee, or each partner,

trustee, director, officer, member, or shareholder of an applicant

or licensee to submit evidence of good moral character. , and

financial stability. Before the issuance of department issues a

license, an applicant shall submit a copy of an his or her

operator's license or state personal identification card , to be

used by the department. The department may use the license or card

only for proof of identity of the applicant.

     (2) The Except as provided in section 2404c, the department

shall require that an applicant for a license to under this article

pass an examination establishing that establishes that the

applicant has a fair knowledge of the obligations of a residential

builder or residential maintenance and alteration contractor to the

public and the applicant's principal, and the statutes relating to

the applicant's licensure.

     (3) The Except as provided in section 2404c, the department ,

upon application, may issue a residential maintenance and

alteration contractor's license to an applicant who, upon

examination, an individual who applies for the license and who

qualifies for a the license , which by passing the examination. A

license authorizes the licensee, according to the applicant's

qualifications, crafts, and trades, to engage in the activities of

a residential maintenance and alteration contractor. A license

includes the following crafts and trades: carpentry; concrete;

swimming pool installation; waterproofing a basement; excavation;

insulation work; masonry work; painting and decorating; roofing;

siding and gutters; screen or storm sash installation; tile and

marble work; and house wrecking. The A license shall specify the

particular craft or trade for which the licensee has is qualified.

This subsection does not prohibit a specialty contractor from

taking and executing a contract involving the use of 2 performance

of the craft or trade for which the contractor holds a license and

1 or more other crafts or trades if the performance of the work in

the other craft or trade other than the craft for which the person

is licensed is incidental and supplemental to the performance of

work in the craft or trade for which the specialty contractor is

licensed.

     (4) A residential builder or residential maintenance and

alteration contractor shall maintain a place of business in this

state. If a residential builder or residential maintenance and

alteration contractor maintains more than 1 place of business

within in this state, the department shall issue a branch office

license shall be issued to the builder or contractor for each place

of business so maintained by the builder or contractor.

     (5) Beginning the license cycle after December 21, 2007, the

The department shall issue the license of a residential builder and

residential maintenance and alteration contractor for a period of 3

years in duration. Beginning December 21, 2007, an

     (6) An applicant for renewal of a residential builder or

maintenance and alteration contractor license shall state to the

department that he or she has a current copy of the Michigan

residential code and has fulfilled meets the appropriate

requirements regarding continuing competency described in this

article or rules promulgated under this article.

(7) (6) Beginning December 21, 2007, a A licensee shall

maintain documentation, for at least 5 years, of activities meeting

that meet the continuing competency requirements as prescribed

under this article.

     Sec. 2404c. All of the following apply to an individual who is

applying for a license or relicensure as a residential builder or

House Bill No. 5284 (S-1) as amended June 10, 2014

residential maintenance and alteration contractor, who was a

qualifying officer on December 21, 2007, and who was subsequently

denied an individual license because of financial instability:

     (a) The department shall determine whether the applicant

should receive a license under this article and what requirements

described in section 2404 the applicant must meet to qualify for

that license.

     (b) In making its determination under subdivision (a), the

department shall consider the information it receives under section

2404(1) concerning the good moral character of the applicant and

other persons described in section 2404(1), shall determine whether

the applicant is required to pass an examination under section

2404(2) or (3) or 2405(1), and may require that the applicant meet

other requirements to qualify for a license.

     (c) The applicant shall certify that he or she successfully

completed at least 3 hours of activities that demonstrate

continuing competency, that include 1 hour of codes, 1 hour of

safety, and 1 hour of legal issues described in section 2404b(2),

in the 12 months immediately preceding the date of application.

     Sec. 2405. (1) If a license is applied for by Subject to

section 2404c, if a corporation, partnership, association, limited

liability company, or other entity applies for a license, the

applicant shall designate 1 of its officers, partners, or members ,

or its managing agent as a qualifying officer. who, upon taking and

passing the examination, and upon meeting all A qualifying officer

who takes and passes the examination and meets [all] other

requirements of this article , is entitled to a license to act for

the corporation, partnership, association, limited liability

company, or other entity. The A qualifying officer shall also

obtain and maintain a license under this article as an individual.

The A qualifying officer shall be is responsible for exercising the

supervision or control of the building or construction operations

necessary to secure full compliance with this article and the rules

promulgated under this article. A The department shall not issue a

license shall not be issued to a corporation, partnership,

association, limited liability company, or other entity unless each

partner, trustee, director, officer, or member, and a each person

exercising that exercises control over the entity, is at least 18

years of age , and meets the requirements for a license under this

article other than those relating to knowledge and experience. If

an individual licensee is also a qualifying officer, the department

shall include the individual's name and license number shall be

listed on any license issued to the individual as a qualifying

officer. In the case of If the department issues a license issued

under this subsection , each to an officer, partner, member, or

managing agent, whether or not he or she is the qualifying officer,

that individual shall provide a copy of his or her operator's

license or state personal identification card to the department.

for use by the The department shall use the license or card only

for identification purposes. A licensee granted inactive status

under section 2404b is not eligible to serve as a qualifying

officer.

     (2) The license of a corporation, partnership, association,

limited liability company, or other entity shall be is suspended

when a license or license application of a qualifying officer,

partner, trustee, director, officer, or member, or a person

exercising that exercises control of the corporation, partnership,

association, limited liability company, or other entity, is

suspended, revoked, or denied. The suspension shall remain in force

until the board determines that the disability created by the

suspension, revocation, or denial has been is removed.

     (3) A suspension, revocation, or denial of a license of an

individual shall suspend, revoke, or deny any other license held or

applied for by that individual issued under this article. A

suspension, revocation, or denial of a license by the department

shall suspend, revoke, or deny any other license held or applied

for under this article by the qualifying officer If an individual's

license under this article is suspended, revoked, or denied by the

board, any other license issued or applied for under this article

is suspended, revoked, or denied. If the license of a corporation,

partnership, association, limited liability company, or other

entity whose license is suspended, revoked, or denied, any other

license issued to or applied for by the qualifying officer of that

entity is suspended, revoked, or denied.

     (4) If the qualifying officer of a licensee ceases to be its

qualifying officer, the license is suspended. However, upon on

request, the department may permit the license to remain in force

for a reasonable time to permit the qualification of a new

qualifying officer.

     Enacting section 1. This amendatory act does not take effect

unless House Bill No. 4582 of the 97th Legislature is enacted into

law.